USDJPY bulls, you have to mind this price level
124 resistance, 122 support
One of the benefits of training and guest speaking is it forces me to go through charts over and over. During preparation, I uncover things I sometimes miss.
This is a video I prepared (my first one) talking about USDJPY reaction to 124 – a price level that was high of 2007. It is looking like a prominent resistance now and strong price rejection can be spotted on H4. At the same time, 122 is a significant support. I give my take.
Salient points that I covered:
- USDJPY 2007 high looks like a prominent resistance now.
- Price rejection at 124 is very prominent on H4.
- Everything above is probably false break or bull trap.
- Despite this resistance, USDJPY is still up trend.
- 122 is likely to be a support.
- 122 was the level which USDJPY previously broke out.
- There is precedent for 122 to be support since it is former 52-week high.
- We saw similar price action last year at 105.
- There will be buyers at 122.
- Selling now is against the trend especially year to year.
- But if price breaks 122, more people will take notice.
- If USDJPY goes below 122, its correction may speed up.
- Incidentally this may be in line with Kuroda’s comments about USDJPY.